Brand Loyalty A Key Element To Automotive Sales Success, Says J.D. Power
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Brand Loyalty A Key Element To Automotive Sales Success, Says J.D. Power

Subaru ranks highest overall; Lexus ranks highest among luxury brands in the inaugural J.D. Power Automotive Brand Loyalty Study.

Brand loyalty is a key objective of automakers not only because it leads to a customer repurchasing or leasing another vehicle from the same manufacturer but because that customer is more likely to recommend the brand to friends and family members shopping for a new vehicle. To acknowledge this key component of the automotive lifecycle, J.D. Power announced the results of the inaugural J.D. Power 2019 U.S. Automotive Brand Loyalty Study, with Lexus (luxury) and Subaru (mass market) ranking highest in their respective segments.

“Customer loyalty is perhaps the most important metric for manufacturers because it incorporates many factors that lead customers to become brand ambassadors,” said Tyson Jominy, vice president of data and analytics at J.D. Power. “When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again.”

Subaru ranks highest among mass market brands – and highest overall – with a loyalty rate of 61.5%. Lexus ranks highest among luxury brands with a 47.6% loyalty rate.

Using data from the Power Information Network, the study calculates whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle purchase or lease. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. The 2019 U.S. Automotive Brand Loyalty Study calculations are based on transaction data from June 2018 through May 2019 and include all model years traded in. 

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